First, research and development and technology barriers

LED display and lighting industry as a high-tech industry, involving optics, thermology, materials science, electronics, computers, software, automation, mechanical engineering, decorative arts and other disciplines, and the need for the above disciplines to be integrated systematic use, has a high technical barriers. At the same time, due to the LED products are mostly customized, personalized production, thus the production process, quality control level and stability and other technical requirements are high. Problems in any part of the production may affect the quality, life and performance of the product.

Second, capital barriers

LED display and lighting industry is a capital-intensive industry, the degree of automation of small enterprises can not guarantee the quality of products and production capacity, and thus can only be in the low-end market for simple price competition. In the current market environment, to participate in the bidding to undertake large-scale projects, you must invest in advanced machinery and equipment to enhance production capacity and technical level. In addition, the industry's common production model for the production and engineering installation, engineering and installation links lead to a long capital recovery cycle, low asset turnover efficiency, high capital requirements.

Third, the national industrial policy support

The state council, the ministry of science and technology, the development and reform commission and the local government put forward a number of industrial policy to promote the development of the whole LED industry and industrial structure optimization and upgrading has played an important role. In the context of industrial policy support, the industry scale is expanding, the industry chain is becoming more and more complete, for the industry to improve the competitive strength of enterprises to participate in international competition to create good conditions, the domestic is expected to emerge a number of independent intellectual property rights and core competitiveness of the backbone of the enterprise.

Fourth, the wide range of product applications

LED various applications in the ascendant, the domestic LED gradually formed instructions, signals and displays, backlighting and other hundreds of LED applications, widely used in landscape decorative lighting, large screen displays, traffic signals, home appliances, digital displays and indicators, automotive lamps, cell phones, digital cameras, computers, LCD TVs backlighting and other fields. With the development of technology, LED also appeared a new application direction, such as aerospace, medical, agriculture, etc. LED various applications of the steady growth of market share and the emergence of new applications and development, for the development of the LED industry to create a good market space.